Annual Report 2002 - Leisure and Cultural Services Department Brand Hong Kong - Asia's world city
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  Outsourcing

In line with the Government's initiative for increased private sector participation in the provision of public services, the department has been actively pursuing cost-effective outsourcing and other modes of private sector involvement.

Outsourcing of activities continues to be adopted to enhance the department's efficiency and to achieve further savings while meeting the higher demands for service quality from the public.

In making outsourcing plans, the following principles are followed:

It must be cost-effective
There should be no resultant lowering in the standard of service
The contract is viable
The department should maintain adequate in-house capability to provide the core services to safeguard against contractors' default
There should be no resultant staff redundancy


Present Position

In February 2000, the department contracted out the management of The Jockey Club Tuen Mun Butterfly Beach Sports Centre. Since July 2001, it has done the same at five other sports centres, namely Quarry Bay Complex Sports Centre, Island East Sports Centre, Chun Wah Road Sports Centre, Cheung Sha Wan Sports Centre and Chuk Yuen Sports Centre. The main objectives of contracting-out management services are to bring in commercial modes of operation, to enhance the quality of services and to deliver those services more cost-effectively.

 
The department has contracted out the management of some of the sports centres to bring in commercial modes of operation.
 
The department has contracted out the management of some of the sports centres to bring in commercial modes of operation.*


Forward Plan

The department has plans to further contract out the management of some sports centres and public swimming pools in the years to come.

Furthermore, an outsourcing exercise is targeted to contract out the backend system of URBTIX by 2004. Under this an advanced ticketing system would be delivered and maintained by a private ticketing service provider. The department will however retain the front-end administration and existing staff necessary to maintain the high quality operation of ticket outlets at its venues.


Management on Outsourcing

The departmental Working Group on Contract Management has been dealing with all contract management matters since its inception in mid-2000.

Consultancy services will be employed to review the department's outsourcing and contract management activities and advise on best practices.

The Working Group provides a forum for all divisions to discuss and decide on matters relating to tender terms and contract management.

Accomplishments of the Working Group include the following:

Standard core terms and conditions for major services contracts (including cleansing, security, horticultural maintenance, venue management and agency services) were compiled
Standard marking schemes, with a two-envelope approach to evaluate major services, were adopted to select suitable contractors
Contracts of similar nature (e.g. cleansing, security, horticultural maintenance, venue management) were bundled in order to achieve economies of scale

In addition, smaller working groups were formed in the Leisure Services Branch on the provision of cleansing, security, horticultural maintenance and venue management services respectively to ensure effective monitoring of services.

Other major developments include:

A workshop for venue/district managers and staff responsible for monitoring the performance of horticultural maintenance contractors was held to share experience and exchange views
Seminars on procurement and contract management matters for around 1,000 participants
Survey on the proportion of services outsourced and sample survey on quantifiable savings of the major services (viz. cleansing, security, horticultural maintenance and venue management) were conducted
Information pertaining to supplies, procurement and contract monitoring matters were uploaded on LCSD Intranet Data Library to provide quick reference for officers
The outcome-base approach in setting contract requirements was studied and will be introduced on trial basis with a view to achieving better service quality
 
 
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